tv Street Signs CNBC July 12, 2013 2:00pm-3:01pm EDT
2:00 pm
as for boeing, after being down better than 7% showing its worst day since august of 2011, heaviest volume since '09. right now it's off 3.25% at 103.44. have a great weekend. >> i'm going to do the herrera commute and try to get back there soon. >> you got it. "street signs" begins now. >> and we begin "street signs" with that breaking news on boeing. a boeing 787 dreamliner caught fire earlier today at heathrow airport in london. the cause of that fire still being investigated, but boeing shares are way down, taking a big hit on yet another potentially damaging story for bow egnewest airplane. let's get out to phil lebeau and you had that as well as a thompson air 787 returning mid-flight to manchester, england, because of some technical problems here. what do we know about the 787 incidents today? >> well, we don't know anything about the thompson situation.
2:01 pm
that may just be any kind of an aircraft problem brought back to the gate. may have nothing more serious to do than that. the real issue is what happens today at heathrow airport with regards to the 787 fire. this was first reported about two hours ago, and once it did, shares of boeing started falling quickly. no passengers were on board the ethiopian airways 787. the plane had been parked at the gate for about eight hours before the fire was discovered, but look at the close-ups of where it appears that the fire is concentrated. it looks to be in the rear of the plane, in the crown of the plane. that is not where the 787 batteries are locateded, located in the belly in the aft section in the rear belly. that's where would you find the rear auxiliary battery. that doesn't mean the fire is or is not batteriled. too early to know for sure. boeing has issued a statement saying we eyre -- we're aware of
2:02 pm
the 787. the ntsb is sending a representative to heathrow saying ntsb is sending an accredited representative to london heathrow to assist in the investigation of fire aboard the ethiopian airlines b-787. quickly want to showing you some of the other stocks that are impacted today beyond shares of boeing, and these are primary suppliers to the aircraft-maker, precision cast parts, spirit arrow systems, hexell, all of them sold off dramatically along with boeing after the first images were reported of this fire. they have since come back as boeing has. also wants ge. it makes its engines that are on this particular ethiopian dreamliner. at this point it's too early to know if this fire is related to the past problems that the dreamliner has had when it comes to the battery system, but we should point out we believe that this is the very first dreamliner that was retrofitted
2:03 pm
with a new battery system once the faa approved the fix. interesting to see what happens over the next 24 to 48 hours once we get an idea of what the problem was. >>ful brings up a great point on the location. fire in the rear of the plane. should we react that way to this incident because at this point it could be a mechanic having a cigarette, something that had nothing to do with the 887 itself. >> yeah, and for further perspective, you know, like it or not, these things do happen more often than we realize. they happen to aircraft that haven't had a series of other incidents so certainly, you know, this is getting, deservedly, more attention than a similar incident would have with the other kind of aircraft. on the other hand, very legitimate for people to be asking these questions, given
2:04 pm
the things that people have had happened over the months and years. >> the stock down 3% now after being down 7%. is this a buying opportunity in this stock? >> i think certainly if you -- if you have confidence that it's not a battery-related issue and you've got confidence in the dreamliner in general, then, sure, this pullback could be a buying opportunity. >> do you have that confidence, or do we not know enough at this stage? >> it's too early at this point to stay. i'd be cautious at this point until we certainly know more about the exact cause of the fire. >> phil lebeau, what do you think it is that we'll get clarity on this from either safety authorities on heathrow, boeing or somebody else. >> yeah, you would hope that we would get at least a rough idea of what caused this fire within the next 24 to 48 hours. that doesn't mean a definitive answer of hey, this part may have malfunctioned or this is where exactly the fire started
2:05 pm
but if it's not battery-related they should be able to say that fairly quickly. the dreamliner has an extensive electrical system, and it may be that something within the electrical system shorted. it doesn't mean that there's a malfunction or a defect in the plane, but that's one possibility. frankly there's a number of possibilities in terms of what might have caused this fire. i think though we should know within the next 24 to 48 hours, if not sooner, from the authorities, if this is battery-related. >> phil, i want to jump in here with a little bit of breaking news on that second dreamliner incident that i referenced on the top of the show. we just got a statement from thompson airways, thompson airways can confirm to nbc news that flight tom-126 traveling pra manchester, england to sanford, florida, experience what had they are calling a technical issue, and the aircraft returned to manchester airport as a precautionary measure, so we have confirmed a second 787 incident today where a plane turned around.
2:06 pm
seth, your reaction. >> that's the sort of thing that happens many times around the world each day. certainly without knowing anything further about that, it would likewise be irresponsible to say it's nothing because we don't know that. however, we've all been that go v gone back to the gate tore cautionary reasons. again though from a perception perspective from boeing, you know, these things are not helpful and investors are really going to be looking for some certainly here. they are going to be looking for, you know, is this just the latest thing, is there something else going forward that we don't know about or are these issues where we can fairly quickly say this is where it is, we can solve it and be confident going forward. >> well, let's have a listen to what the ceo of boeing had to say to our very own jim cramer last month when jim basically asked him whether or not he was worried whether or not the dreamliner problems would not get solved. let's have a listen.
2:07 pm
>> did you ever worry that the battery was a colossal mistake, that it could not be fixed and would you lose orders and would you owe a fortune to those who stuck by you? >> never. >> never? >> never worried about it. i mean, this was a solvable problem. it was a difficult problem, one that we regretted having, impacted our customers, but the response of the people of our company was to roll up their sleeves and go to work and solve the problem. >> ken, i would like to ask you once again with regards to the stock price, where it is going to go from here. do you confidence that jim mcnierny is the guy that needs to stay in charge or are you starting to question management and their decisions at all? >> again, if it's a battery issue and it turns out it's a battery issue, then certainly there are a lot of legitimate questions that are going to be asked and should be asked. keep in mind, too, though that prior to today there were a number of 787s that had issues since the battery was in place
2:08 pm
but as long as they weren't fire-related they weren't given more attention which is the right response, but, yes. cheerily if this turns out to be an issue with the battery and the fix that boeing pollute in place, then, yeah, there are questions that you need to ask. i hate to belabor it, but it's a little early to jump to conclusions. >> your price target for boeing is below where it is right now, currently sitting at 102, and price target of 98. we do see it going down. what would be the reason for that? >> nothing related to the battery. i have confidence with the fix they put in place, and that's more a reflection of macro concerns and the ability for airlines to continue to place orders and take delivery of aircrafts across the cycle and i think the stock around $100 has been fairly priced. again, not a reflection of concerns about the battery or what boeing has done to address that. >> okay. phil, you've spoken with customers that have placed orders with the 787 and have yet to take delivery.
2:09 pm
they have been patient with boeing. now you've got the incident with the ethiopian air and with thompson. got to wait for the causes of those. having spoken with customers, how patient do you believe that they can be with boeing before deciding they may have to look at another plane? >> extremely patient. in fact, i guarantee you. anybody who has an order right now for a dreamliner are looking at this incident, and the primary question they are asking is this a systemic issue? if it's not, they are looking at certainly the thompson situation today, could be nothing more than perhaps there was a problem with a valve somewhere. remember the day after the incident in boston, brian, there was an oil leak involving a dream line yes, and it got all this attention. everybody said oh, my gosh, here's another problem with the dreamliner. it was an oil leak. these things happen on planes. we don't know what the situation is with thompson, but that's what i doubt anybody who has an order for dreamliners has to worry about that situation. when you have a fire on a plane,
2:10 pm
the level of severity or seriousness with which the people in the aviation industry treat the problem, it ratchets up tenfold and i think that's the one where people will be looking at this saying is there a systemic issue here? we don't know this. would be a one-time incident and it will be interesting to see what they say the cause it. i don't think anybody will change their mind or pull any orders any time soon. that's not going to happen at all. >> the irony is back on april 27th ethiopian airlines i believe was the first airline to get its dreamliners up in the air after they had been grounded for about three months. >> exactly, and this may be the plane, mandy. we believe that this is the plane. we have not been able to confirm that, but we believe that this was the first plane that was retrofitted and that section that we focused on earlier, the crown in the rear of the plane, that is typically a crew rest area. now every airline can configure can the plane how they want it. it's unclear whether or not it's
2:11 pm
a crew rest area or more of an open cargo area, not even a cargo area, an open area in the crown of the aircraft. something to keep in mind. we don't know where this fire started but that's where it appears to be. >> before we get to the overall markets, here's what's interesting. the analyst community was chatting about what phil just said, doesn't look like a battery issue, but now that we've confirmed a second issue with thompson air the stock has made another turn down, come another couple of bucs off the bounce high that it made about ten minutes ago. >> the trading volume on boeing is incredible today. i believe it's about 400% or more above its ten-day average. as we can see there on the chart, a fantastic chart that really shows exactly what's been going on with boeing stock today and boeing also accounting for pretty much all of the dow's losses today, not that the dow was really on fire at all earlier on, but nonetheless the dow is being kept down, as you
2:12 pm
can see there, by 3/10 of 1%. i want to get to bob at the nyse and rick santelli. given the trading volume with the stock today, what are traders saying to you about how they feel about it and the news today? >> well, i think they are more focused on other issues. certainly boeing is important, but what ups said was going on in china i think is occupying a little bit more attention for the more. i want to use this opportunity to tell people how the dow works because you had a good point there about it dropping. here's the dow and the boeing announcement. the dow is a price-cap index, not a market-weighted index and when boeing dropped $7, almost a $50 drop -- 50-point drop in the dow and it's recovered now and moving down a little bit, but you can seat impact that it, the fourth most expensive stock in the dow so it has a very heavyweighting being a price-weighted index. more important is what's happened with ups and the important thing is we're having
2:13 pm
some influence on the transports, fedex is down and some of the shipping companies are also down and why they are lowering their guidance by about seven cents. first they cited a slowing u.s. industrial economy and that threw some people. not expecting that and the other thing that's important is customers are looking for cheaper shipping alternatives and that's why a lot of people thought that was the primary incident and global growth rates are lower than expected and ups is now reflecting that in their commentary. i want to point out what's going on with the banks because something very important today, stocks are up, jpmorgan, wells fargo up on their earnings report for the most part. you can see jpmorgan just went negative but for most of the morning they were on the upside, regional banks on the upside. folks, normally you can sell into the bank earnings season. that typically happens and particularly since we've had a big move up, bank stocks dramatically outperforming this
2:14 pm
quarter and that's a good reason why you would sell into the bank earnings situation, up almost 15% in the second quarter. >> would like to send it out to rick santelli because i did a double take and saw a headline a moment ago with regard to treasuries saying the ten-year yield is set for its biggest weekly drop in 13 month. is that so? >> well, i'll tell you what, we'll have to wait until the end of the session because we are seeing some definite volatility. imagine that you're on the operating table and you have two doctors looking down at you, mandy, and one doctor says oh, i think we have to remove it and the other doctor says oh, no, i think it stays. how would you feel as a panchlt we're getting duelling comment from various fed officials on to taper, not to taper. the taper caper. so as you look as these 5s, 10s and 30s what, has been a big week in terms of a corrective rally, some would just call it a rally, others would say we're seeing the maturities that move the most are moving in the other
2:15 pm
direction, but let's put it in perspective. five-year yields are still down 20 basis points on the week and 10 off their lows, 10s are down 14 basis points on the week and 30s are down 9 basis points on the week, so we want to continue monitor the renewed selling and maybe some of the buying earlier in the session had to do with, of course, the idea that the auction-related selling this morning was completed. >> well, you know what? if i had two doctors and they couldn't agree, i'd probably get a third opinion is what i would say but thank you very much. luckily at the fed we've got about ten opinions all conflicting. thank you rick and bob. let's turn it over to josh lipton for a quick market flash. what's on your screen is. >> watching alexion pharmaceutical, the stock was halted, just resumed trading. can you see that spike there in the chart. the news bloomberg is saying roche is seeking financing for a possible alexion takeover bid. roche could offer 130 a share,
2:16 pm
that stock up 23%. >> another stock featured a couple of time on our under the radar stocks on street talk. >> last year filled with big drama for yahoo!'s marisa mayer, but you're about to see why none of it matters. >> and sharknado, can't get enough behind this. the man behind the best/worst movie we've ever seen. some of you have already have. tweet us. we love reading your thoughts. you can also check us out on facebook, or you can e-mail us@streetsigns.cnbc.come.
2:19 pm
well, if the pc is not doomed, it's at least fighting to survive. sales of purge computers, am i supposed to be offended by that? >> we could have done a freaky friday where i'm going to do my mouth and you're going to do the talking. >> another threat is emerging. the so-called chrome book, web-based laptops that lack an operating system. mark, i mean, these chrome books
2:20 pm
have been pretty well reviewed, cheap and have come out of nowhere and are taking market share. any sign of a pc recovery anywhere? >> let talk about chrome books first. part of the reason why they are resonating with consumeers is because they are so cheap, and they are sort of like the modern day not -- netbook, simple and affordable which is what people gravitate to. windows needs to show they have listened to customers and vim proved things and the hybrid devices need to take off on the right price. >> let's hit the rewind button. who is winning in chrome books? >> well, actually samsung. they are one of the best because you get it for under $300. it's a great design, long battery life, close to eight hours, so that is our top pick. if you have a lot of money to
2:21 pm
spend, the chrome book pixel from google itself goes around for the $1,400 range but at that point it's way teams pensive for what you're getting. >> obviously nobody is winning in chrome books, no really good numbers on how many have sold. the best numbers that i've seen came out in april showing that in terms of browser share, less than 1% of browsing out there is being done on these chrome books, so it could be like the return of the netbook, a cheap pc, i'll try it out and maybe i don't really need it. >> right. >> what mpd said is the sales of chrome books are taking off in the sub $100 space which is actually competing directly with tablets. >> quickly, do you believe that this windows 8.1 is really going to help revive sales of windows 8? >> is the return of the start button going to solve microsoft's pc issues? >> no, it won't. the start button, even that itself takes you to the live tile menu which to a lot of people has been pretty confusing, and i think one of the biggest problems with pcs in
2:22 pm
general is that they work well enough, long enough where people say i need a tablet to supplement my real work device and i think that's the biggest problem that they are facing. >> i think the key to success is bringing back clippy. >> the paper clip thing? >> that was a joke. anyway it's going to be a year today, right, since marisa mayer took over at yahoo! and what a year it's been. she's been secured in the headlines for a number of reasons, but the one thing you can't argue is the stock's performance. as we can see over one year, are my eyes deceiving me, i think it's up about 73%. jon fortt, do you think that things are going to keep on getting better, when you look at that one year, 73%, can she keep this magic going? >> well, she's been amazing. you just can't deny how well she's been able to operate here, without increasing revenue at all. an heir apparent from the marketing perspective in silicon
2:23 pm
valley to steve jobs. ts that kind of heat. they have got to get the needle moving on something, whether it's display ads or search ads. >> that's what i'm confused about, okay? google makes tons of money, most from search ads. apple makes tons of money from iphones and ipads and its products. how does yahoo! make money? >> well, yahoo! -- >> how does yahoo! make 73% more money, by the way, than it did, a revamped home page, better mail product. >> that could help. that could help, because if they get more people on these products and advertisers want to be there, they can sell a higher price. what's been happening, they have been selling fewer ads and charging more money for them which you can do only so long until you've got that $1 billion ad you're selling to somebody. >> made ads available in the mobile space and if the ad market takes off in the mobile space they will benefit. >> that's a big if, mark. >> and the other thing they are
2:24 pm
trying to do is unravel their relationship with microsoft and binge search and if they can move over to google they can reap more revenue on the search side. >> which sector and who next? >> definitely on the acquisition path. most of these have been really small acquisitions that a lot of different companies do, but they just don't announce them. marisa's team has been pumping out press releases, they acquired a company that was one guy and put out a release and video about it letting everybody know, hey, people want to work with us. she's amazing. she's amazing, but also reconstituted the board and gotten yahoo!'s vision out there and search is going to a point where it's bigger than display, that can't go on. they have to get display moving. >> and whatever people think of her and her decisions good for her for blocking out all the public backlash and noise and making the radical changes and decisions that were needed. coming up next, is it just too late to buy the host stock of the year? herb is going to weigh in.
2:25 pm
>> all right. and can you guess what the most expensive college is in america? you guys know? don't guess here. a new ranking and one state's plan to let all students go to college for free, but there is a catch, so tweet mandy or myself with your guess. we'll have the answer right after the break, and if you get it right, we may throw it up for you. coming up owns signs. el, tdd#: 1-800-345-2550 then schwab is the place to trade. tdd#: 1-800-345-2550 call 1-888-284-9410 or visit schwab.com/trading to tdd#: 1-800-345-2550 learn how you can earn up to 300 commission-free online trades tdd#: 1-800-345-2550 for six months with qualifying net deposits. tdd#: 1-800-345-2550 see how easy and intuitive it is to use tdd#: 1-800-345-2550 our most powerful platform, streetsmart edge. tdd#: 1-800-345-2550 we put it in the cloud so you can use it on the web. tdd#: 1-800-345-2550 and trade with our most advanced tools tdd#: 1-800-345-2550 on whatever computer you're on. tdd#: 1-800-345-2550 also, get a dedicated team of schwab trading specialists tdd#: 1-800-345-2550 who will help you customize your platform tdd#: 1-800-345-2550 even from the comfort of your home. tdd#: 1-800-345-2550 and talk about ideas and strategies, one on one. tdd#: 1-800-345-2550 get all this with no trade minimums. tdd#: 1-800-345-2550
2:26 pm
and only $8.95 a trade. tdd#: 1-800-345-2550 call 1-888-284-9410 or visit schwab.com/trading tdd#: 1-800-345-2550 to open an account. tdd#: 1-800-345-2550 and learn how you can earn up to 300 commission-free tdd#: 1-800-345-2550 online trades for six months with qualifying net deposits. tdd#: 1-800-345-2550 our trading specialists are waiting to help you get started. tdd#: 1-800-345-2550 so call now. tdd#: 1-800-345-2550
2:28 pm
an update now on boeing. general electric, which supplies the engines to the boeing 787 coming out with a statement saying its engines were not involved in that dreamliner fire. a few probably thought they were. given at phil lebeau pointed out the fire was in the rear of the plane which according to the seat map, thank you to our team, is where the crew or lavatories are on the plane, not much mechanical and ge backing away saying no engine issue in the 787 fire. >> we're also following this story. just outside of paris, a packed commuter train has derailed in a suburb 12 miles south of the french capital. at least eight people have been killed. dozens more are reported to be gravely hurt. authorities are calling the accident scene a catastrophe. the reports are that the express train barreled through a
2:29 pm
station. when it decoupled it's a major holiday weekend. bastille day so the train was exceptionally packed. we'll bring you more on this as it becomes available. >> back to business. after a 2280% gain in 2013, who are we talking about, tesla? it is finding a new home, and it's going to be in the nasdaq 100. is it now too late to buy or just getting started? herb greenberg joins us now. you thought this was a joke, in fact. >> thought it was a joke at first. speculative company, hasn't been around and doesn't feel like it's been around as a public company and been a public company for three years. netflix was added back in june and facebook added in december after being public for less than a year so the real question is being added to the nasdaq 100 the reason to own this stock or any stock for that matter. some of these stocks have risen but not because of being added
2:30 pm
to the nasdaq. they have risen because there's been something good or bad about them. i want to point out it will go into the qqq. that will a high weighting in there, higher than other companies and that will have a little bit of an impact? >> going to put more fire under this stock? >> look, i think when it comes to any of these companies, any of these hot battleground stocks, big momentum stocks, you can argue all the fundamentals all day long. doesn't matter until the company gets up at an earnings event and says you the numbers aren't quite what we expected. will this help the stock? it could get a day trader's boost, i suspect, but it would be already out there. the boost would have occurred. index inclusion has its benefits. only temporarily. you bite stock because you think it's either a great company and will do much bert or otherwise. >> thank you very much. taking the place of oracle, right? >> thank you, herb. >> next up, another update on the breaking news of the hour.
2:31 pm
boeing stock having the worst day in two years after a fire inside a parked dreamliner in london. the new details on this latest setback for the boeing 787 dreamliner. plus this. >> i'm michelle caruso-cabrera in havana, cuba, a special place in heaven for cubans who have to wait for the bus. that story coming up owns signs. about viagra. r ask if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. this is the age of taking action. viagra. talk to your doctor. with fidelity's options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options...
2:32 pm
2:34 pm
the secretive cuban government has invited business journalists to the country -- we're going to take a look at what's going on with boeing. >> shares still down today. have come back a little witt off their low on the word of that fire at the heathrow airport in london. again, still trying to find answers on this boeing stock having its worst day in a long time, and it is singlehandedly bringing the dow down as well. let's rejoin phil lebeau. i thought you brought up an excellent point because you're one of the few people out there in television who has been in this plane, taken a flight on it and in it. you know how it's built so you're bringing insight that a few others out there can, and you pointed out the location of the fire. that -- and we looked at the seat map, by the way, which i tweeted out as well. not much back there mechanical, is it? >> no, and depending on how the plane was configured when
2:35 pm
ethiopian airways order it, in some green lineiers that is a crew rest area in the crown in the rear of the aircraft, but it's unclear whether or not ethiopian airways had a crew rest area put in there or if it's just an open section, and, again, keep in mind, that is where it appears that the fire pfr was located because that's where we see the scorch bars and where the fire crews were working. as you guys well know, when you have an aircraft like this or a confined structure like an airplane, just because that's where they are making an entry into the plane and they are doing -- they are battling the flames there, it doesn't necessarily mean that that's the source or the location where the fire started. it really is just one little glimpse into what's possible behind this fire. it is important because in the past when we saw the two previous battery-related fires, they were located in the battery systems, in the bill belly of the aircraft. it does in the appear that there is anything wrong with the belly
2:36 pm
of the aircraft or the battery systems. that's strictly an observational point from here. it could be that this is battery-related, could not be. we simply don't know. all we know it appears to be in the crown of the rear of the airplane. >> thank you very much for that, phil. thanks for keeping us updated and we're also hearing that the suppliers to boeing with regards to the dreamliner, they are coming back in terms of their stock price. of course, boeing took a real whack. there we go. we've got some of the supplies up for you, hexal and spirit airlines. boeing at one point down 7% and over 22 million shares i think were trading hands, changing hands, the highest since june 2009. meantime, let's get back to what's happening in cuba because the very secretive cuban government has invited business journalists to the country to do stories about the economy. the question is why would a country that avoided private business for years want them
2:37 pm
there? michelle caruso-cabrera is one of those journalists and joins us live from havana. what exactly do they want? >> hey there, mandy. what they want is a better economy. they need a better economy, and what they have done is they have invited journalists here to show some of the small, very small changes they are making to the economy. for example, now, just in the last year and a half or so, they now permit people to open small businesses, be self-employed, not work for the government, and as a result you now see little shops opening up in doorways, oust windows, everywhere you go. one of the other changes that they are making is they are now going to allow cooperatives. that means workers can join together to form a business or what's probably more likely is they are going to take over inefficient state-run businesses. in particular, the government is encouraging them to do this in transportation because transportation for the average cuban is horrendous. take a look at video of the buses here in havana, for example. they are packed all the time.
2:38 pm
there's no air conditioning when it's sweltering out. only costs 20 cuban pesos which is the equivalent of one u.s. cent and even that cheap doesn't seem worth it. one woman complained about how long she had been waiting, there for an hour and a half. all of the old american cars that you see on the streets in havana still, those are all used as taxis, and they are always packed. you see people running for them, trying to get a space. now, a new cooperative is set to start where workers can rent these new yellow buses painted like taxis, and get this they will be able to charge, based on supply and demand, that's a big deal for a country that still says it's completely committed to social itch. now a lot of people look at what's happening here and say is this like china 1980, and when you ask the officials here they say absolutely not, that this will always be a socialist nation, that the biggest industries will always be
2:39 pm
controlled by the government, but they are certainly starting to let some changes happen among individuals. they have to. critics say they are doing it because it's the equivalent of letting air out of a balloon that's about to pop due to discontent. all have you to do, remember, guys, look at brazil. all that stuff in brazil started because people were upset about the buses. when your daily transportation is horrendous it can really grind on a population. back to you guys. >> certainly is a startling example. thanks very much, michelle caruso-cabrera in cube a. coming up, which retail stocks are headed for a baby bump when the newest royal is born? we're going to be naming the queen of the mall. >> we'll check the forecast because we want to know if conditions this weekend are going to be right for a "sharknado?" great white sharks in the skies. it could happen, but first, bill griffith, what's coming up on the "closing bell"? >> none here, but a whirlwind of a show, it says here. how are higher rates affecting well fargo's bottom line?
2:40 pm
we'll ask the cf oft world's largest mortgage lender the day they announce earnings and ralph acampora called this rally way back before it began. we'll find out if he's still bullish as ever at these lofty levels and kraft beer sales are soaring creating huge job growth in that industry. maria and i look forward to that and much more at the top of the hour. back to "street signs" right after this. we're all totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. [ male announcer ] you wait all year for summer.
2:41 pm
2:42 pm
to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies."
2:43 pm
folks, as you know on this show we like to do work for you so we dug into our screens to try to bring you stuff that you won't see anywhere else, and you know we talk about retail a lot and like these companies we want you to come out on top, so take a look at this. who are the best one-month performers in the stock market from a retail perspective? guess what, it's actually stage stores, followed by dollar tree, dollar tree, gap and nordstrom. month-to-date performers, a little different. abercrombie & fitch is on top, big lots second and family dollar, office max and the gap
2:44 pm
making both lists, mandy. >> abercrombie & fitch no longer selling black because the ceo does not like it. speaking of retail, it's getting a bump because of kate middleton's baby bump. of course, we aring on rail baby watch and a royal fashion watch. live in front of st. mary's hospital in london. look at all the cameras there. wow, everyone is camping out because princess kate is going to deliver the baby at that hospital. she was due yesterday, so she's already overdue. stacy, i want to ask you, not getting a royal tailor for the baby is one thing but going to baby gap is a whole different thing. what is kate middleton going to do and who does it benefit in the retail world? >> the calm before the storm here right now. hopefully kate will show up as i'm on camera here, but, you know, we know that kate is not just a high end lady, seen
2:45 pm
shopping at the gap for maternity collapse, shopping at top shop which is rolling out in nordstroms and ralph lauren and runs the whole spectrum so this is big business. baby bump for retail big business. some are talking over 100 million pounds in retail sales from the royal baby. >> and it's not just clothes, right? it's things like the silver spoon from tiffany's and various other things. i mean, even if, for example, it is made known, made public that she's going to get a tiffany's baby spoon, would that spur other people to go and do copycat sales? >> it does. if you think about the past, think about the dress on emobama, that sold out in seconds. if she goes in to buy baby uggs,
2:46 pm
70 pounds, $130 u.s. people are going to be rush together stores to buy the pink or the blue baby uggs. again, huge business here and not to be underestimated. >> go, uggs, an australian company and i can believe there's going to be a celebrity sports star who could be the godfather to the royal baby. >> mike tyson? >> yes. there are -- there are plenty of gambling bets taking place here, so the odds potentially on david beckham being the godfather are 4-1 here, so maybe he'll bump harry out of way. it's not going to be a great day for prince harry. in the only is he getting bumped out of royal succession by this baby, but potentially he might get bumped by david beckham as godfather so that's pretty painful for him. >> keep on camping out there. don't miss the baby action. i understand some of the camera crews behind have been camping out since the first of the month 24/7 and the birth is going to
2:47 pm
be announced on twitter. sign of the times. thanks. >> breaking news, not to throw a little water on that fun fire, but fresh comments on monetary policy from philadelphia fed president charles placer. he says the fed should tweet 6.5% unemployment and inflation as triggers rather than thresholds for raising rates. chairman bernanke has said those are the points in which the fed would consider raising rates. plasser said the fed should wind down qe the end of this year. just because financial markets like what the fed is doing doesn't mean it's the best policy. plasser is not a voting member of the fomc this year, but he will be next year. he's considered one of the more hawkish members of the fed. all right. coming up, the mad genius behind "sharknado." sci-fi's channel executive vp on how the greatest film of all
2:48 pm
2:49 pm
vietnam in 1972. [ all ] fort benning, georgia in 1999. [ male announcer ] usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection and because usaa's commitment to serve military members, veterans, and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve.
2:50 pm
2:51 pm
can separate the signal from the noise, what do you think about the second screen experience and how we drive tune in, and all those kinds of things. >> that was twitter's ceo talking about how big tv events can drive twitter traffic. well, one of those moments happened just last night. during the sci-fi channel's campy tv movie "sharknado," twitter was exploding. it was abuzz with deep thoughts on the cinematic piece of history. more than 100,000 tweets were posted to the website about "sharknado," and here's a few choice ones we've plucked out. mia farrow tweeted the simple, omg, omg, omg, sharknado! and actor will wiesten said, you fool, we should have taken global warming seriously, and now there is a "sharknado." the ideas came from god, the twitter handle, at the tweet of god, suggestions there, wolf-cano, hipper-quake and we have some of those in australia. >> and the twitter tornado over
2:52 pm
the "sharknado" has not ended. joining us from the weather channel is mark elliott. here's our question to you, mark, and we mean this seriously -- >> sure. >> -- we know if a tornado can pick up a car or a woman on a bike or a little dog, and i'm going to get him, too, by the way, what would it take for a tornado to pick up a giant shark that could eat us? >> all right. well, the eating part is out of my expertise. >> you are very thin -- >> well, i eat, i have no idea if the shark would be able to survive the trek through the tornado and be able to eat you. here's the thing. if everything was perfect, in theory, we could see a shark get picked up by a water spout. but, i mean, we do know that there are life forms from the water that have been picked up before. we've seen fish get picked up by water spouts, and we've seen frogs fall from the sky. and sometimes they fall miles and miles away from the storm itself.
2:53 pm
so it gets us thinking, right? but you would imagine when you see a water spout like this, the column of water underneath that funnel is just as big, but that's not really what happens. it's really just skimming the surface of the water and picking up what's there. so the fish and the frogs are from really shallow rivers usually, that's how it often will happen. so the shark has to be at the surface, it has to be a huge tornado that happens to move over, let's say, a brackish river that that shark is hanging out in, so all of the things have to together correctly. >> well, thank you very much for that, and by the way, when you were saying fish were being picked up and thrown hundreds of miles away, that has happened, by the way. >> yeah. >> 2010, outback town in australia, where it was raining fish, and the fish were still alive, and they said it wasn't the first time it had happened. thank you very much for that report. >> sure, no problem. >> a perfect example of something we already know, god
2:54 pm
hates australia. let's bring in michael. i need to understand. you probably outbid hundreds of other studios to get this thing, because it's classic masterpiece. how did you come up with "sharknado"? >> well, we have been doing original films like "sharknado" for the last 20 -- the last 12 years. we're doing about two a month. and they're terrific co-productions between an incredible corral of independent film producers and our own film's development team. when you sit in the room and you hear a pitch that's about a tornado full of sharks, you buy it in the room and you get it produced as quickly as possible. >> right. cheap to make. it's become a hit. let me talk dollars and cents. how much does it cost to make a movie like this, and how much do you make from it? >> well, these are great ad sales drivers. key co-produce them.
2:55 pm
we spent $2 million, $2.5 million, and we share that with the producing partners who have the international distribution rights for them. they're a terrific driver for us. but it's not just about the bottom line. as we've discovered, this turned into a social juggernaut. so in the theory that rising tides lift all ships, "sharknado" really created a halo around sci-fi last night that all of our programming benefits from. >> 5,000 tweets per minute at one point with "sharknado." will there be a sequel? >> i'm not as liberty to divulge that quite yet. >> oh. >> if i'm a betting man, i think there will be a two safshipship fairly soon. i might get in trouble -- >> two things, before you go, ian zering, i don't know how you landed him, he was the best in "90210." how about whale-icane?
2:56 pm
>> are you pitching me idea? because we buy them in the room -- >> michael, how about this? we help you market it, but you have to have us -- we'll get eaten by the sharks. we'll be the first guys that die. look at that. >> can you have the shark biting brian's head off. >> i think you just came up with the next great twitter -- twitter campaign or social people which is, "i got devoured on sci-fi." >> thank you so much. michael, and in case you missed it the first time around, relax, daus it will air again next thursday at 7:00 p.m. eastern sci-fi channel. next up, the most expensive college in america. out there owning it.
2:57 pm
the ones getting involved and staying engaged. they're not afraid to question the path they're on. because the one question they never want to ask is "how did i end up here?" i started schwab for those people. people who want to take ownership of their investments, like they do in every other aspect of their lives. always go the extra mile. to treat my low testosterone, i did my research. my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer.
2:58 pm
women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about the only underarm low t treatment, axiron.
2:59 pm
here is the answer to the quiz we pos ited to you prebreak. which american college has the highest tu snigs new york university topping business insider's new ranking. tuition, room, board, the total cost under $62,000 a year. a shout-out to mike z, good job, getting it right first. our executive producer is 1990 nyu alum, tuition $16,000. so, mandy, four years, loaned out, in debt more than the average price of a home in the united states. >> that is really a shocking statistic. but oregon seems to have a found
3:00 pm
a solution to the problem. the state is mulling a plan that would allow students to attend state schools without taking out a loan. it's called pay it forward. students would pay back a percentage of their salary for about 25 years after graduation to pay for future students. let's see where it goes. >> have a great weekend. >> "closing bell" is next. happy, everybody. we enter the final stretch for the week. welcome to cleveland brown clk. i'm maria bartiromo. the market trying to squeeze out another big win. not sure we're going to make it. >> boeing is not helping. we've had a very good week so far. i'm bill griffeth. the stocks struggling to hold onto the early gains. still, we are set to close what has been the second best week this year so far.
59 Views
IN COLLECTIONS
CNBCUploaded by TV Archive on
![](http://athena.archive.org/0.gif?kind=track_js&track_js_case=control&cache_bust=1059833410)